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An Uber freight truck.
Source: Travis Kalanick | Twitter
Uber Freight, the trucking division of the rideshare company, announced on Thursday that it has acquired Transplace in a deal that values the transportation logistics company at $ 2.25 billion.
Uber shares edged down in pre-market trading.
Uber Freight will acquire Transplace from TPG Capital, the private equity platform of alternative asset firm TPG which acquired Transplace in 2017. The deal includes up to $ 750 million in common shares of Uber Freight. Uber and the rest in cash.
It’s a rare move for Uber, which has spent the last year ditching its for-profit self-driving unit and flying taxi segment. Instead, Uber chose to invest billions in strengthening its Uber Eats segment, acquiring alcohol delivery company Drizly and food delivery service Postmates.
The deal, the companies said, will create one of the main logistics technology platforms. The companies said the acquisition comes at a time of accelerating transformation in logistics.
“The demands of a volatile market and the increasing complexity of globalized logistics collide with industrial-age transportation technology,” the company said. “Amid capacity constraints and escalating transportation costs, shippers are adapting their operations at an increasing rate and are seeking technologies, support and solutions that can modernize their supply chain and maintain critical goods. and the moving economy. “
The deal is expected to help Uber’s trucking division achieve profitability. The company said it could help the segment break even on an adjusted EBITDA basis by the end of 2022.
The agreement is still subject to regulatory approval.
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